FSA clears Ranson over Equitable

CITY regulator the Financial Services Authority has decided not to take any action against former Equitable Life supremo Roy Ranson, the architect of the mutual's downfall.

The watchdog's decision is likely to disappoint the Treasury. Financial Secretary Ruth Kelly has repeatedly tried to pin the blame for the disaster on Equitable's former management - a move seen by critics as spin, aimed at deflecting attention away from the shortcomings of various government bodies.

Kelly and Chancellor Gordon Brown are anxious to avoid paying compensation to victims in the wake of a report into the disaster by Scottish judge Lord Penrose.

The FSA has, however, informed Chris Headdon, another previous Equitable boss, that it wants to ban him from the financial services industry. Headdon, a former aide to Ranson, is fighting the ruling.

Ranson, who retired from Equitable in 1997, is living in comfortable style in his Buckinghamshire bungalow on a free pension of £150,000 a year for life. He was repeatedly criticised in the Penrose report.

But the FSA concluded that at the age of 73, he is unlikely to attempt a return to the industry.

Officials have taken the view that there is little point in incurring the costs of taking action against him.

Ranson and other previous directors still face a £3.2bn legal action that has been launched by Equitable's new management.

p>A spokesman for the company said: 'We are still pursuing a legal action against the former board including Roy Ranson and it would be inappropriate to comment further.'

Paul Weir, of the Equitable Late Contributors Action Group, said: 'I hope that Ranson is brought to book for his actions, but I also hope that the government is held to account for failing to protect policyholders.'